Are you tired of the rising cost of living in your current country? Dreaming of a safer, more affordable lifestyle with better healthcare, higher pay, and a more balanced way of life? You’re not alone. Thousands of people are exploring the cheapest countries to live in Europe in 2025 to get more value for their money without compromising quality. Whether you’re a remote worker, retiree, or simply seeking better opportunities, this guide will help you explore where to relocate in 2025.
Why Move Abroad in 2025?
There has never been a better time to consider moving abroad. With inflation impacting housing, healthcare, and daily living costs in countries like the U.S., UK, and Canada, many people are seeking more affordable and fulfilling lifestyles elsewhere. Advancements in remote work and global visa reforms have made it easier than ever to relocate from Nigeria to Europe or from anywhere in the world to high-standard yet budget-friendly destinations.
Here are some reasons to consider relocating:
- Escape high living costs
- Access better public healthcare and education
- Enjoy visa-friendly policies for expats and remote workers
- Live in safer, cleaner, and more stable environments
Now, let’s dive into the 5 cheapest countries to move to in 2025 and beyond.
1. Luxembourg – High Income, Low Tax, Small Budget
Often overlooked, Luxembourg is a small but wealthy European nation with an impressive quality of life. Despite its reputation for affluence, it’s possible to live on a modest budget thanks to generous public services and subsidized transport. It ranks as one of the low tax countries to relocate to in 2025.
Why Luxembourg?
- Free public transportation
- High average income with low unemployment
- Strong financial and tech job markets
- Luxembourg residence permit options for workers, family reunification, and investors
Average Monthly Living Cost: ~$1,900
Luxembourg is ideal for professionals seeking a secure environment, families looking for top-notch education, or remote workers desiring low tax burdens and modern infrastructure.
2. Italy – Affordable Lifestyle, Beautiful Cities
Italy has long been a favorite for retirees, artists, and remote workers. In 2025, regions like Sicily, Calabria, and Puglia are offering programs like the 1 euro house in Italy 2025, making it one of the best places to relocate on a budget.
Why Italy?
- Affordable housing in small towns
- Excellent public healthcare and culture
- Various visa options like Elective Residence and Italy digital nomad visa
- Delicious food and relaxed lifestyle
Average Monthly Living Cost: ~$1,200
Italy is perfect for people who value culture, history, and a cheap way to live in Europe with access to excellent infrastructure.
3. Portugal – Europe’s Best Budget Destination
Portugal consistently ranks among the cheapest countries to live in Western Europe. Whether you’re a retiree, tech professional, or freelancer, it’s one of the easiest and most rewarding countries to settle in, especially for Africans looking for friendly immigration options.
Why Portugal?
- Low cost of living and high quality of life
- Mild climate, friendly locals, and great food
- Visa options like the Portugal D7 visa and Tech Visa
- English widely spoken in major cities
Average Monthly Living Cost: ~$1,100
Cities like Porto, Braga, and parts of Lisbon offer expats a modern lifestyle on a tight budget.
4. Austria – Clean, Safe, and Surprisingly Affordable
Often overshadowed by Switzerland or Germany, Austria offers similar benefits with a lower price tag. It has strong social programs, capped rent policies, and world-class public transportation.
Why Austria?
- High quality healthcare and education systems
- Easy access to residence via Red-White-Red Card
- Clean, safe cities like Graz, Linz, and Klagenfurt
Average Monthly Living Cost: ~$1,400
It’s ideal for professionals, students, or retirees who want European residency without breaking the bank.
5. Iceland – Minimalist Living with Maximum Benefits
While not traditionally known as a cheap destination, Iceland offers excellent quality of life with options to minimize costs. The government offers a remote worker visa, and the minimalist lifestyle can make budgeting easier.
Why Iceland?
- Clean air, low corruption, breathtaking landscapes
- High-paying jobs and strong currency
- Growing community of digital nomads and freelancers
Average Monthly Living Cost: ~$1,800
With some planning, you can live affordably by choosing small towns and working remotely.
Comparison Table – Cost, Visa, and Benefits Breakdown
Country | Avg. Monthly Cost | Visa Options | Best For | English Friendly? |
---|---|---|---|---|
Luxembourg | $1,900 | Work, Family Reunification | High earners, families | Yes |
Italy | $1,200 | Elective, Nomad, Investor | Retirees, creatives | Yes |
Portugal | $1,100 | D7, Tech Visa | Remote workers, families | Yes |
Austria | $1,400 | Red-White-Red Card | Professionals, students | Medium |
Iceland | $1,800 | Remote Worker, Family | Freelancers, digital nomads | Yes |
How to Move Smart – Tips for Budget Relocation
- Start with an immigration consultation
- Use expat forums and relocation groups (e.g., Facebook, Reddit, InterNations)
- Consider shared housing and off-peak cities
- Open local bank accounts and research tax rules
With proper planning, even “expensive” countries like Luxembourg or Iceland become surprisingly affordable.
Final Thoughts – Make 2025 the Year You Relocate
Relocating in 2025 doesn’t have to drain your savings. Countries like Portugal, Italy, Austria, Luxembourg, and Iceland offer an unbeatable mix of quality, safety, and affordability. Whether you want to retire in Europe, find visa sponsorship jobs, or simply enjoy a better lifestyle, these five countries make the cut.
So, start your journey today. Research your ideal destination, get your documents in order, and explore how to get European residency without breaking the bank.
FAQ
Q1: Which European country is cheapest to live in 2025?
Portugal and Italy top the list with average monthly costs below $1,200.
Q2: Can Nigerians move to Portugal or Italy easily?
Yes. Both countries have flexible visa routes such as the D7 and Elective Residence.
Q3: How much do I need monthly to live in Austria or Iceland?
Austria: $1,400; Iceland: $1,800. Both offer high value for the cost.
Q4: What are the visa options for relocating to Luxembourg in 2025?
Work visa, family reunification, and investor permits are available.
Q5: Is healthcare free in these countries for immigrants?
Many offer subsidized or public healthcare to legal residents, especially in Austria, Portugal, and Italy.